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Bokoni Platinum reboot could knock ARM’s cash flow
['David Mckay']
Miningmx
Bokoni Platinum is another of ARM’s deals.
But three years later, ARM put Bokoni back into mothballs, pending a new feasibility study.
Analysts worry that ARM’s cash generation could be negatively affected by Bokoni’s recommissioning, especially if another project, the Two Rivers Merensky project, is approved.
As a result, ARM is expected to generate strong cash flow assuming current PGM basket prices are sustained, says Citi analyst Shashi Shekhar.
At R15.2bn in capex, Bokoni implies a capital intensity of R40,500/oz, which is in line with the R30bn in brownfield PGM projects unveiled by Sibanye-Stillwater in June.